Even though it is a completely different entity than the neighboringUnited Way National Capital Area in Washington, the head of the United Way of Central Maryland said that with the Washington organization once again mired in scandal, United Ways across the country could feel the impact.
“Any time there is negative press on any United Way in the country, all of us get painted with the same brush, which is unfortunate because each United Way is a totally separate organization,” said Larry Walton, president of the United Way of Central Maryland.
The latest scandal stems from an article published earlier this week in The Washington Post saying that former Chief Financial Officer Kim Tran left her position in frustration, alleging that the local chapter inflated the amount of money it raised. According to The Post, Tran left her position in March along with two other employees who confirmed her allegations.
Tran, who was hired in 2003, alleges that she was asked by Chief Executive Charles Anderson to add $1 million in what she said were questionable corporate donations to the charity?s 2004 projections. Audited results for the 2004 campaign indeed showed that the charity?s projections were off by about $1 million for 2004, the most recent period for which it announced results.
But Larry Miller, a spokesman with the United Way National Capital Area, disputes Tran?s claims, saying it is not uncommon for audited results to differ from projections ? especially with funds coming in after the official close of the campaign.
“The allegations that were made are somewhat out of context,” Miller said. “We projected in 2004 to raise $39 million, and there was an audit that showed we raised $38 million during the campaign cycle. It takes about a year for audited results to catch up with projected results, and we?re pretty confident that they will.”
Sheila Consaul, a spokeswoman with the United Way of America, which oversees the 1,300 local charities nationwide, said the Washington charity did nothing wrong in releasing its 2004 projections.
“It appears that everything the organization did in regard to releasing projections is within our guidelines,” Consaul said.
“What it appears to be is a dispute in releasing projections and the final results, and [Tran?s] preference not to do that.”
Scandalized before
» This is not the first time The United Way National Capital Area has been affected by scandal. In 2003, an internal review revealed questionable spending by top leaders and inflated overhead costs. Then-CEO Oral Suer in 2004 pleaded guilty to pilfering about $500,000 from the charity and its pension fund. He served two years in prison before his release in 2006.
